[Music] [Music] Namaskar friends welcome to session 1 in our course on operations management so today we are going to start our discussion on an important topic that is operations management now before starting this topic let us focus on the 2 words that is operations and the management now in operations if we say this is not a new word we are conducting operations maybe for the last 200 250 300 years the raw materials are being converted into the final products by transformation processes transformation can be a physical transformation it can be a chemical transformation it can
be a thermal transformation so using any transformation process we convert a raw material into the final product so that is the basic fundamental definition of an operation in which we convert a raw material into the final product using any transformation process this is related to the tangible outputs in terms of products in today's scenario we have operations in terms of hospital industry we have operations in terms of aviation industry we have operations in term of banking industry also which we term as the service operations so we can have mechanical operations we can have service operations
we can have other type of operations also so basically first and foremost function that we need to understand is an operation in which the inputs are converted into outputs in our first definition where we talked about the physical transformation of the raw material the raw material can be any product it it can be any physical thing for example it can be cold so coal you do a thermal transformation you can burn the coal you can convert water into steam so the input can be coal and water and then the output can be steam so you
are using a thermal transformation so another transformation can be you would that is I think a better example you take would you cut the wood chisel the wood and then you can make a X so you have a handle of X made up of wood and then you have a metallic piece which is used for the cutting action so do you have two inputs there you do some transformation and you finally get a product so those are the tangible products in which you convert the raw material into the final product in services also you have
people as input you have systems as input and then these people work on the systems to deliver you an output for example in hospital you go there without ailment the people the doctor the nurse is the paramedical staff with the help of instruments and equipment will work on you and will send you to your home hale and hearty or with happy faces so basically the in case of any operations we use inputs and we finally get the outputs now first and foremost we must be able to understand the word operations that we are going to
study today in our first session then comes the management now management means that we have to take care of these operations in the most effective and efficient manner we must be able to utilize our resources we must be able to convert our inputs into the outputs in the most efficient and effective manner now how to ensure that efficiency and effectiveness we will use we can use certain management principles which can help us to optimize the use of our resources and that will help us to get profit for the organization or to bring the organization into
the competition with the existing organizations so management will help direct guide coordinate you can use number of objectives to help the organization in order to convert the raw materials into the final product in the best possible manner so in operations management we our focus will primarily be to use the concepts of management in order to manage our operations in order to do our operations in the best possible manner in order to conduct our operations in the best as well as most effective and efficient manner so we can have different types of management of different functions
in which the management can be applied sometimes we talk of Industrial Management so there we talk of management in terms of the industrial aspect so we talk of behavioral aspects also morale of the employees and different aspects are taken into account in wages and incentives that we pay to our employees so everything comes under Industrial Management we can have a topic of time management in which our focus will be on time only applying the principles of management for better management of our time then we can have other forms of management also sometimes we read a
book called change management suppose you want to change from one particular situation to another particular situation or you want to change from one particular segment for to another particular segment then you need to do the change management you need to change from one place to another place change management comes handy so there we apply the principles of management for managing the change so principles of management may have a particular skeleton or those we have to adopt and try to apply these guiding principles rules regulations procedures into a particular function so in operations management that important
function are the operations so operations as I have already explained will help us to convert our inputs into the tangible outputs and these management principles will be the guiding forces which will help us to better manage our operations to effectively efficiently transform our inputs into the outputs now if we try to understand that what can be the major object of operations management just to have a rough idea that why do we need to do operations management if I am if I am running a company and we are producing a product what I will keep in
my mind while doing this transformation in my factory we are converting the raw material into the final product what will be the focus the focus will primarily be on the quality of the product that I am producing the focus will be on the quantity that I have promised to my customers the focus will be on the timely delivery of this consignment that I have agreed upon with my customer then I have to ensure that my prices are competitive my cost is competitive with that of the competitors cost so there are four important points that I
have highlighted just now first one is the quality quantity time and the cost so these four things are the guiding principles in case of operations management so when we are managing our operations when we are doing our business we have to always keep in mind that our business should be such that we are able to meet these four objectives we must be able to produce good quality we must be able to satisfy the customer quantity why's that if he wants a particular amount of our product we must be able to deliver that in a timely
manner as well as in a cost-effective manner so though these four words are very very important and therefore we need to apply the principles of management for managing our operations or for conducting our operation so that we remain in business we are competitive and the company further improves on the path of growth and progress so basically our focus has to be on conducting the operations in such a way that we are competitive and we are successful and for that reason we are doing this course we are running this course so that after going through the
course maybe this course as all of you maybe knowing that this is a 30 hour course in which we will have 60 seconds of half an hour each and the course will be conducted in 12 weeks so all of you are aware of the basic you can say framework of the course so the course is designed in such a way that after going through the course what are the learning outcomes or the learning objectives of this course after conducting or after going through this course you must be able to address various issues related to operations
management I must address here that you may not become an expert of each and every aspect of operations management but you have you'll have an overall idea that what are the important aspects what are the important topics or what are the important functional areas in which you must develop your understanding further so that you become a good operations manager now important topics can be starting from the conceptualization of the product you need to find out new and new products which are required in the market and for that you need to do need analysis you need
to work on product design and development you need to conceptualize a product you need to think of various aspects during the designing of the product so first thing is what the company must produce that answer will be found out after going through this course then how it has to be produced in what quantity it has to be produced how to do the production planning how to check whether we are going with our plan or not or we are digressing from the path that we have identified during the planning stage so all these answers we will
be able to answer scientifically and logically after going through the course so then further you can make your understanding much more clearer much more advanced after going through specific topics and then going into each topic in much more detail but our focus will be that in these thirty ARS we have a overall picture of the subject and for academic point of view the learners who have registered for the course and they are doing the similar course in their college or university or in the Institute they will get adequate information so that they are able to
perform well in the exam that is related to operations management so the target of our team for running this course is that all engineers all managers have an idea about various tools and techniques that can be adopted for managing the operation so the overall objective I think I have tried to highlight in this brief discussion in the beginning of the course only now I will switch over to the presentation because every session will be of half an hour duration only so we will be focusing on the various aspects both with one to one discussion as
well as with the help of a presentation which can help you as notes that you can follow when you prepare for the assignments as well as for the examination so we will try to understand the basic definitions of operations management and try to understand that what all we are going to cover in this complete course of 30 our duration on your screen you can see the operations management and the source is also highlighted you can see in operations management there are lots and lots of things that intermingle with each other most of the topics are
interrelated to each other so you have as I have already explained input output so the input is converted into the output so you have input output relation then there are resources so resources can be inputs that you convert into the output so the sources can be we can have raw material resources sometimes our transformational resources will be there we have specific set of machines equipment that we use for that we can use for converting our raw material into the final product then there are requirements based on the demand we know how much we must produce
then there is a control we have to see that we have planned that we will be producing 500 cars per week so we have to check whether in the last week we have produced 500 cars or not suppose we have produced 480 cars only that means that we are lacking by 20 car so we have to expedite we have to pull up over socks we have to speed up in the next week and we must ensure that in the next week we produce 520 so that we are able to take the backlog of 20 into
account so that is what is related to control we have planned something 500 cars per week but in a particular week if we are lacking next week we have to make it up then supervision overseeing that is also important planning cost all these are the catch words give words that are very very important in context of operations management but here it is showing the interrelationship that each parameter has to be taken into account in and you can say objective of managing our operations in our target of managing our operation so each and every aspect we
have to take into account and each one of these are interrelated to each other but it is easier when we have a structured discussion on the various topics although each and every topic is interrelated to one another but then once we focus on each topic individually we will be able to appreciate their relation amongst amongst themselves for example suppose we are able to study sales forecasting we will be able to use that number in sales forecasting what do we do we use various techniques there can be qualitative techniques there can be quantitative techniques of forecasting
and then we forecast a number that in the next year this is the sales forecast now how that forecast number can be used it will be used for aggregate production planning it will be used for planning of our resources it can be used for materials management so it can be used for materials requirement planning so it is related to the other aspects of operations management also to sales forecasting we will have a structured discussion that what are the various methods of sales forecasting the output of sales forecasting will be used at the next level of
planning in which we will see that how have we how we have to use our resources so all these aspects are interrelated so if we have a solution to one important topic or one important problem it will help us to solve many other problems in the downstream or in the downline so that is very very you can say important at the very first session only to understand that each of the topics are not stand-alone topics they are interrelated they are intermixed and we need to understand the subject not learning the various topics individually but learning
them in context of the overall objective of operations management that is to ensure the good quality products are produced in right quantity at right time and at competitive cost so this overall objective always has to be kept in mind and each topic has to be studied in its context of other topics or in its reference to the other topics or in its relation to the other topics now what are operations I think now we will slightly speed up in today's presentation because whatever I wanted to explain whatever is given in the presentation I have already
explained with certain examples so what are the operations the aspect of a business organization that is responsible for producing goods and services I have already highlighted with the example of X with an example of a hospital that this is operations are the those aspect of business organization that is responsible for producing goods or services a function or a system that transforms inputs into outputs of greater value so you have a wooden block or you have a wooden which has very less value but when you transform it you plane it you machine it you remove the
wood you give it a particular shape and then it can be used as a handle for X you are adding value to that log of wood so now that wooden log has been converted into a handle of an X by transforming it by removing certain material from the log of wood so this is a function or operations is a function or or a system that transforms inputs that is a log of wood into the output that is a handle of an X which is of greater value now operation management deals with the design and management
of products processes services and supply chains so we can see that different types of aspects are related in operations management we have to look at products we have to look at processes we have to look at services that we are rendering or our operations are rendering to the customer and we have to look at the overall supply chains starting from the raw material to the final delivery of the product to the customer at his doorstep so that complete supply chain is also a aspect that can be covered in operations management so here the focus will
be on design and management of all these four important aspects starting from products to the final supply chain so as I have already told our focus will be on product design and development of a broke focus will be on aggregate production planning our focus will be on capacity planning so we will be focusing on these aspect by learning the various tools and techniques which can help us to manage these four aspects of operations management now what is operations management just a very fundamental definition the business function responsible for now this is a business function which
is responsible for planning coordinating and controlling the resources now you can see there are three important words written in blue planning coordinating and controlling what do we need to plan what do we need to coordinate what do we need to control the resources now we need to see we need to plan that when we have to place an order for the raw material in how much quantity we need the raw material then what is what are the inspection procedures that we need to do on the raw material so we need to plan for the materials
we need to plan for the workforce how many people are required when they are required what are the skill sets that are required for these workers then we need to plan for the money that how much money will be required to make this many number of products from where that money will come how we need to generate our resources in terms of money so that we are able to satisfy the demand of the customer so we need to plan we need to coordinate we need to control the various resources why because these resources are needed
to produce the products and services for the company so we need to check the that we are able to meet our objective of satisfying the demand of the customer so once again I will read this a very important definition of operations management that the business function responsible for planning coordinating and controlling the resources needed to produce products and services for a company the science and art of ensuring goods and services are created and delivered successfully to the customers so we need to ensure that goods and services are created created means they are produced they are
fabricated they are processed and delivered to the customer and important adjectives that I have missed is delivered successfully to the customers now for how to we can say define the word successfully how to understand the world successfully now successfully we can say that if the quality of the products and services that we have produced if the quantity that we have promised if the cost is competitive if we are able to ensure the timeliness of delivering our products and services so if we are able to focus on these four words that is the quality quantity time
and cost only then we can say that we have successfully rendered the product or services to our customer and that is the basic target of operations management that we are able to satisfy our customers so that they become loyal to the brand of our company and they feel satisfied and confident in buying the product from our company so the overall target of operations management is to be competitive and to in order to satisfy or I must say be competitive by ensuring the satisfaction of the customers now this is a transformation process the slide looks slightly
busy but we can very easily understand the transformation process there are inputs the inputs can be land people capital information materials then we have transformation process that is the transformation or conversion process so we can take any example I have taken an example of an X today in which we use wood as a raw material and then we convert it into current final product that is X then the outputs can be goods or services so basically the transformation process involves any change or value-added change in the raw materials in order to get the final product
so that is the output but in output can be of two types output can be it can be acceptable output or it can be non acceptable or faulty output so if you do not get the output as per your requirement so that we will using our control function so we have a specific set of inputs there is a transformation process and then we get our output or the output in terms of products or services or goods now we already have planned we know the specifications of our output so we will match these specifications we will
match these characteristics that we look forward to in our product if the characteristics are met we will say yes this is an acceptable product but suppose the characteristics or specifications are not met the quantity is not met we will say no this is not satisfying the laid out criteria then there is a provision of sending of feedback there is a feedback mechanism now we will measure we will contrite ooh control the output if we are out of control the as per our measurement we will send a feedback and that controlling mechanism will help us to
fine-tune to relook at our inputs as well as the transformation process so that we are able to come back on track we are able to rectify the problems or the issues that have arisen and that have led to not meeting the target or that have led to a faulty output and that faulty output has to be corrected with the help of a controlling mechanism or the feedback mechanism so this is the broad gambit of operations management we have to manage the inputs we have to manage the transformation process we have to manage the output that
we are producing so that we are able to justify we are able to provide a good quality product to our customer now why do we need to study operations management I think this is going to be the last or the second last slide for today's discussion so operations management is an integrative body of knowledge whose skills are needed in industries as diverse as healthcare as and telecommunication hospitality food service banking consulting and as well as the last one which is most relevant to us that is manufacturing so this is important not only from manufacturing point
of view but you can say that various service sector industry industries also require the basic aspects of operations management no operations management is one of the three major functions the other two being the marketing and the finance so there are for any business organization there will be three basic functions so one will be the marketing then the operations management and finally the finances and it's in ting its integrally related to the other business functions also so for marketing we get what needs to be produced how it may be it is going to satisfy the demand
raised by the customer so sales department marketing team will have their own set of criteria for from the feedback from the customers and operations means that we have to convert that feedback of customers into the product that is going to satisfy that demand in the market so operations management will help us to know how goods and services are produced in the most efficient and effective manner it will help us to understand what operations manager need to do in order to ensure good quality product in right quantity at right time and in competitive cost so operations
management will answer number of questions that may be there with the management so if you scientifically logically manage your operations you will be able to be successful in the industry now this is probably the last slide today why this slide has been compiled so that in the very first session you get an idea that what all we are going to study in this course now in this course we will see product design and development in which we will cover topics like our gonna mix rapid prototyping design for manufacturing and then we will be seeing the
product life cycle different topics related to product design and development then we will switch our attention to sales forecasting in which we will be covering quantitative and qualitative methods of forecasting than the facility planning and plant location we will be covering that in which region of the country or the word we must set up our manufacturing facility now once that has been identified we will focus our attention on how the various facilities various machines equipment shops must be laid out within the factory then we will see the production planning aspect that how we need to
optimally utilize our resources that is man-machine equipment then we will see the Shi dueling that how to manage that time we will be seeing critical path method program evaluation and review technique that is CPM per techniques then we will see scheduling and sequencing that how we need to sequence of our operations on the various machines within the factory finally we will see the output once we have produced the things as per our plan how to check the quality for example total quality management total productive man maintenance as statistical quality control Six Sigma we will be
seeing and we will also be seeing the materials management topics such as the inventory control and economic quantity model and EQ the economy quantity then the production models we will see such as just-in-time Kanban materials requirement planning enterprise resource planning so all these aspects we will be covering in our course and since the course is 30 hour duration we will be covering maybe one or two sessions on each propping so that we have an overall view of the operations management concept so with this we conclude the today's session and I sincerely believe that we have
laid a strong foundation for what we are going to cover in this course because from next session our target will be to study the details related to the basics of operations management such as what are the scopes functions of operations management what do we mean by operations strategy so in first week of our focus will be to reinforce our knowledge related to operations management and then we will shift our attention to the product design and development in week two and sales forecasting in v3 and subsequently we will be covering all these topics mentioned on this
slide and at the end of the course it is expected that all learners must be able to understand or grasp the basic tools and techniques that can be used for efficient and effective management of operations thank you [Music] [Applause] [Music]
